Manager Coaching

The Benefits of Hiring from Within

Last Updated: Jun 6, 2022 | Leadership

About to post a new position at your company to a public job board? You should consider potential candidates that are already in front of you first, right? Find out why with Arden Coaching’s post that explores the benefits of hiring from within!

Hiring from within allows your company to do the following:

1. Continue the Culture

Manager CoachingWhat do people who are already working for your company have that a talented new hire doesn’t? A background strength that many tend to forget called institutional history. Institutional history is something unique to every organization’s operations, the why of a business that can only be gained through time spent in a position. The more time and experiences gained, the more institutional history one possesses.

When you hire someone totally new, they start from scratch in terms of institutional history. They have to learn the bigger things about your organization (who you are as a company, your core values, mission statement, etc.) in addition to all of the technical processes (what worked in the past and what didn’t, your ground rules for communications, etc.).

Especially when it comes to hiring for a management role, hiring from within is a smart move. You hire the individual that has already proven they fit into and uphold the company culture and has done well in their role. In doing so, you bypass the extra training and learning curve that’s associate with bringing on a completely new candidate and instead build on the investment that an existing employee’s already made to your company.

2. Further an Employee’s Existing Commitment

When an employee gets promoted from within, their commitment to your organization gets stronger. And not only does hiring from within inspire loyalty in the employee who receives the promotion, it also sets an example for the rest of the team.

Samuel, a midlevel graphic designer, was hired eight months ago and has worked incredibly hard since then. The design team is continuing to grow, and your company decides to promote Samuel to design department lead. With Samuel’s promotion, other designers see that with hard work and focused effort, each of them has a shot at moving within the ranks at your company too.

Bringing in someone for a management role from outside the company could have the opposite effect you’re after and cause current employees to seek an outside opportunity of their own. It pays you in the long run to pursue an employee who you’ve observed would be a good fit, possesses the necessary skill set to do a great job in the position, and is already committed to the company’s future.

3. Help Employees Explore Their Career Interests

People RushingIf you’re hiring primarily for a cultural fit, people won’t always work out in the positions they’re in. Hiring from one department to fill the needs of another (if you can) is a great way to further invest in your employee’s career interests and pull from your organization’s existing pool of talent.

This scenario highlights the importance of developing the employee-manager relationship. By discussing your employees’ interests and getting to know them beyond just what’s on the surface, you’ll be able to help them be happier in their role instead of seeking another opportunity with another organization that will.

This also helps to connect departments and create a greater awareness of the resources that exist within the company. Spreading out who knows who can help employees across departments grow a strong support system and get to know one another better than they would have otherwise.

Hiring from within Benefits Your Company Now and Later

Hiring from within is a good habit for your company to get into. It helps to establish a sense of loyalty and longevity and allows your organization to best cultivate and reward its existing talent.

But stepping into a management or leadership role without the proper training can pose a challenge for those you promote. Investing your company’s employees in leadership training is an asset that will pay itself back in dividends.

Interested in group training for your managers? Check out Arden Coaching’s group leadership training programs that can help your rising employees develop the personal and professional skills they need today to become your company’s future leaders tomorrow.

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